The Principles for Positive Impact Finance are a high-level, inclusive, framework for holistic impact management by financial institutions at the heart of their business operations.

By requiring that the three dimensions of sustainable development (environmental, social and economic) be considered via a transparent appraisal of both positive and negative impacts, they are designed to complement existing impact frameworks to:

  • drive better, SDG-serving business models across the economy
  • bring further clarity to market players and avoid ‘SDG-washing’
  • provide an entry point to deeper thinking on the financial value of positive impacts and the development of new, impact-driven business models.

We’re developing user guidance! Coming soon:

PI Model Frameworks

  • How to implement holistic impact management? How to build on frameworks currently used by financial institutions?
  • Our Model Frameworks will guide issuers and third parties alike on what Principles – compliant lending and investing looks like.

PI Impact Radar

  • What impact categories apply to holistically consider the three dimensions of sustainable development?
  • Our Impact Radar provides a collection of impact categories against which to identify the potential positive and negative impacts of your clients and investee companies and their activities.

Join us at UNEP FI’s Global Roundtable on 26-28th November in Paris to discover these tools and how to use them.

Download the Principles for Positive Impact Finance brochure:

Refer to our Frequently Asked Questions for more information

 

PRINCIPLE ONE: Definition

Positive Impact Finance is that which serves to finance Positive Impact Business. It is that which serves to deliver a positive contribution to one or more of the three pillars of sustainable development (economic, environmental and social), once any potential negative impacts to any of the pillars have been duly identified and mitigated. By virtue of this holistic appraisal of sustainability issues, Positive Impact Finance constitutes a direct response to the challenge of financing the Sustainable Development Goals (SDGs).

PRINCIPLE TWO: Frameworks

To promote the delivery of Positive Impact Finance, entities (financial or non financial) need adequate processes, methodologies, and tools, to identify and monitor the positive impact of the activities, projects, programmes, and/or entities to be financed or invested in.

PRINCIPLE THREE: Transparency

Entities (financial or non financial) providing Positive Impact Finance should provide transparency and disclosure on:

  • The activities, projects, programs, and/or entities financed considered Positive Impact, the intended positive impacts thereof (as per Principle 1);
  • The processes they have in place to determine eligibility, and to monitor and to verify impacts (as per Principle 2);
  • The impacts achieved by the activities, projects, programs, and/or entities financed (as per Principle 4).

PRINCIPLE FOUR: Assessment

The assessment of Positive Impact Finance delivered by entities (financial or non financial), should be based on the actual impacts achieved.

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